As per my understanding - if I have billed my client Rs 7000/- as service tax and I have paid my vendors Rs 3,000/- in service tax. I would only have to pay Rs 4,000/- as service tax. Does this hold true with any other form of Tax? VAT? Income Tax? etc?
Does this hold true with any other form of Tax? VAT? Income Tax? etc?
On VAT at a broad level yes. However there are quite a few restrictions on type of good you can claim exemption on, where the good are purchased, generally if purchased out of state, VAT credits are not applicable. Further if the final goods are exempt from taxes, the VAT credits cannot be claimed. Please consult a qualified CA for your specific case.
Income tax does not have such concept as the tax is paid on profits / income generated.